Literature Review 4
Data Limitations 14
A wage differential or also known as wage gap is the difference between pay rates of two identical jobs or types of worker that happens because of different reasons. Generally, wage differential might be due to different factors as geographic location, education, gender, occupation, experience, age and so on.
Some argue wage differential might happen due to characteristics of employer and employee, even though other third parties effects also should be considered.
For instance, the following factors are said to be important for analyzing wage ...view middle of the document...
Push factors is the unattractiveness of one region comparing to another, while Pull factors is attractiveness of one region with respect to another. This was the result of wage differential resulting in the regions. Wage differentials might be observed in Uzbekistan,that will be later shown in analysis part of this report. Nevertheless, governments try to eliminate wage differential particularly in this case, in Uzbekistan, by not allowing regional migration simply by putting very strict ban on registration in capital of Uzbekistan, Tashkent City. This might be one of the examples of putting cap on net migration and elimination of wage differential. The similar policy in limiting internal migration was used in China during the reign of Mao Ze Dong.
Also, another impact of wage differentials between regions is also very important. Wage gap between male and female is usually happens a lot, and a government tries to eliminate wage discrimination by gender. For instance, International Labour Organization (ILO) promotes policies which reduces and eliminates gender discrimination in workplaces. For instance, government tries to reduce wage differentials due ethnicity, gender by introducing different sort of acts. For instance, in the USA with the signing of Civil Rights Act in 1964, discrimination in employment with respect to hiring, promotion and pay of minorities and women become illegal.
There are some common policies taken by the Government in order to eliminate inequality between genders. Even though, wage differentials exists in less developed countries LCD, this situation might be observed in reality it Developed countries, such as USA. On average, women’s earn 23% less than men, according to Bloomberg. However, this situation might not be perfect explanation to give information, is it true women getting less because they are women or for another reason. According to Conservative economist Diana Furchtgott-Roth states that part of the gap reflects the situation when women, on average, work fewer hours than men. Among people who work 40 hours a week, according to the Labor Department, women make 87 percent of what men do. At the same time,
However, there is some wage differentials that are not discriminated based. For instance, it is naturally important that educated labour force pay rate is higher than for less educated. Highly skilled labor is usually earns more. Also, there might be situation of compensating wage differential due to unattractiveness or unpleasantness of particular job, or it is risks associated with moral or physical hazard in this case, or vice versa. For instance, being miner in ores might involve serious health hazard in the future as well as, being unpleasant at the same time, therefore, this unpleasantness and risk of health hazard might be compensated via higher pay rate. Moreover, some jobs that are more or less pleasant with respect to others, such as different civil services, that are highly reputable,...